Mike Khouw said on CNBC's Options Action that The TJX Companies (NYSE: TJX) traded nine times its average daily call options volume on Monday. The activity was high because the company is due to report earnings on Tuesday.

The stock hasn't performed well this year; it has lost around 15 percent and it's not cheap on relative basis, comparing to Macy's (NYSE: M). On the positive note, The TJX Companies managed to post 10 consecutive years of revenue and EPS gains and the stock is trading at around 16 times forward P/E, noted Khouw.